MoneyExpert.com: Christmas shoppers face high charges on credit card cash

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MoneyExpert.com: Christmas shoppers face high charges on credit card cash

Thu 27th Nov 2008

MoneyExpert.com has found that shoppers may be hit with "massive" rates of interest if they try to withdraw cash on their credit cards this Christmas.

The price comparison site found that the interest rate charged for withdrawing cash is 24.8 per cent on average, making it seven per cent higher than the standard rate of interest for credit card purchases.

Research conducted by MoneyExpert.com this time last year found that many people were still paying off their credit card debt from the previous Christmas.

Sean Gardner, the director of MoneyExpert.com, said: "Fundamentally, credit cards shouldn't be used for cash withdrawals unless you're paying the balance off straight away.

"But with finances squeezed […] it is worrying that rates are so high."

Earlier this week price comparison website published a survey which showed that many high street banks had raised the rates of interest for people going over agreed overdraft limits as well.

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